What Determines the Value of Your Home

Friday, December 16, 2011

Watch on your mobile device >>Basically, a home’s worth is determined by its market value. How is “market value” determined? Most often, it’s figured by a comparison (“comp”) with homes similar to yours in the surrounding area. So, if the homes in your neighborhood average, say, $250,000, then it’s likely that the value of your property will fall in the same range. But market value is also determined by a number of factors including the following:

External Factors

There can be several external factors influencing the value of your home. One is “curb appeal”, or the first impression your property makes upon prospective buyers. A home that’s in excellent condition on the outside will make a great first impression; a home in poor repair instantly loses its appeal to buyers. Other factors can include lot size, popularity of an architectural style of property, water/sewage systems, paved roads, sidewalks, etc.

Internal Factors

The condition of a home’s interior also has a huge influence on prospective buyers. When you’ve demonstrated “pride of ownership” and kept up the maintenance (quality paint, trim, molding, etc.), a buyer’s interest will immediately perk up for the simple reason that they know your care and concern will result in less cost and maintenance for them. Other internal factors include construction quality, condition of appliances, size and number of rooms, heating/cooling type, energy efficiency, etc.

Supply and Demand

“Supply and demand” simply refers to the number of homes for sale versus the number of buyers. When there are more homes than there are buyers, prices tend to be lower. When there are a lot of buyers chasing few homes, then prices tend to rise. In effect, supply and demand affects how quickly your home will sell. Location More than likely, you already know the old saying, “There are three main factors in real estate – location, location, location.” While that’s not the whole story, desirability is a big factor for home buyers. They may want to live in particular school district known for its education excellence…a great and safe neighborhood with rising property values…etc.

But I Know My Home Is More Valuable Than a Lot of Comparable Homes in My Neighborhood

Aren’t Allowances Made for This? Definitely! Sometimes, it can be difficult to find homes exactly comparable to your own. So, dollar adjustments are made for the differences between your home and comparable properties.

Where Do I Find Sales Comparison Information?

The easiest source to access is your Realtor. After all, it’s his or her business to know such information! But, there are also other sources you can tap into in order to get a complete picture of your home’s value in comparison to others in your neighborhood. Here’s an overview of them:

1. ) The Local Assessor’s Office

It’s very likely that your local assessor will be able to provide the sales history of a particular house, neighborhood, or style of architecture. Many assessors also provide lists of recent sales which you can browse and compare to the assessment roll. Today, many municipalities provide local sales and assessment information online making it very easy to access. Check with your local government agency to find out if they provide this service.

2.) Online Private Companies

You can search for these companies using the Google search engine and the keywords “comparable home sales” or “comparable sales.” Some companies offer free information; others charge a nominal fee. If you wish to get more specific, you can Google “real estate database” and type in the name of your particular state to get additional property information.

3.) Your Local Newspaper

It’s likely that your local newspaper is a great source of specific real estate information. Look for quarterly sales reports in the real estate or business sections.

The Key to Getting the Price You Want (or Close To It) for Your HomeThe key to getting the best value is finding and matching the right buyer to your home. And that’s the job of the Realtor! He or she should work hard to qualify those buyers upfront so the right people are viewing your property! In other words, the Realtor should weed out “lookers” and other unsuitable buyers as a first step in working with you. See how I do that for you by calling me today!

Testimonials

“Jessica was a great match for us! She helped from the first second to the last. She listened and responded to our needs, wants and wishes. From the initial meeting to the staging process, and pictures and finally posting the house and contacting potential buyers she kept us posted and updated. We couldn’t have been more grateful :)!
Joel & Dhurata Dobbins”

Dhurata Stroni

We used Whitney Stringer as our buying agent for purchasing our new home. Whitney, as well as the entire staff at Amanda Howard was very patient with all of our questions and kept us up to speed as we navigated this very complicated process. Overall, it was a relatively painless process, and we are very happy with our new home!

I never hesitate to refer a relocating client to Amanda and Team. They have proven systems for both buyers and sellers and deliver top notch customer service throughout the process… and most importantly RESULTS! The Amanda Howard Team are true professionals and masters of their craft!

Kathy Toth

As a home builder, the agents at AHRE have spoiled me. They are well educated in all aspects of the market, highly driven, skilled and well seasoned by the training they receive working for Amanda and Travis Howard. They don’t believe in the word “try”. They believe in the word “do”.

Rachel Brown Matthews

“It was a great match for us. Jessica helped from the first second to the last. She listened and responded to our needs, wants and wishes. We couldn’t have been more grateful :)!
Joel & Dhurata Dobbins”

DhStroni

Amanda Howard real Estate was awesome, it was a quick process for me cause I already knew what I want. For areas that I needed help with, they had the solution. Thank you!!

Tori

Excellent experience all the way around and sold our house quicker than we ever imagined!

Bryan H.

I have never been so impressed with a real estate firm as I have been with Amanda Howard! My listing agent, Michelle Daymond, was honest, efficient and totally knowledgeable about all facets of listing a house for sale. This firm is completely up-to-speed on a technical level I have never seen in real estate. This was as stress-free as selling a home can be. Thank you.

S R.

Buying a house was so much easier than I expected! The real estate team walked with me through every step of the way, which was very important since this was the first time I tried buying a house. From the start, Allie made it very clear that my happiness and financial well being were her number one priority!